Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Dow's JV Finances Sadara Project

Dow Chemical (DOW - Free Report) announced that Sadara Chemical Company, its joint venture with Saudi Arabian Oil Company (Saudi Aramco), has secured main financing for the Sadara project. Sadara Chemical has entered into agreements with export credit agencies, commercial banks and the Public Investment Fund of the Kingdom of Saudi Arabia for roughly $10.5 billion of project financing.

The main financing supplements around $2 billion raised through a Sukuk issuance in Apr 2013, bringing the total Sadara project financing to roughly $12.5 billion. The funds raised will be used for the construction and start-up of a world scale chemical complex in Jubail Industrial City II, Kingdom of Saudi Arabia.

The complex will have 26 manufacturing units and will include flexible cracking capabilities. Sadara is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. Sadara’s first production is expected to commence in the second half of 2015, with full production starting in mid-2016. Financial close of the project financing is expected to occur in the third quarter of 2013.

Dow has formed the joint venture to ensure long-term profitable growth in its downstream, innovation-driven businesses and also in the fast-growing regions such as Asia Pacific, the Middle East and Africa, and Eastern Europe. The joint venture is expected to generate EBITDA margins of 35%-40% and reap average equity earnings of $500 million annually during the first ten years after its start-up. This will also enable Dow to be at a competitive cost position.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Zacks Investment Research is an A+ Rated BBB Accredited Business.

Copyright 2016 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1988-2015 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm.

Visit performance for information about the performance numbers displayed above.